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    Confident One's Avatar
    Confident One Posts: 1, Reputation: 1
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    #1

    Feb 28, 2009, 08:53 PM
    Average Cost (AVCO) Method
    This is my homework question.

    The following information relates to the receipts and issues of stock by the Beersing Company, during the month of August 1999. There was no opening stock at August 1, 1999.

    Receipts:

    August 5 300 units at $2 each
    10 500 units at $4 each
    18 400 units at $5 each
    26 800 units at $6 each




    Issues:

    August 8 200 units
    20 800 units
    30 800 units


    (a) Prepare the Stock Card provided for the month of August 1999, assuming that the Beersing Company uses the Average Cost Method (AVCO) of Stock Valuation.

    (b) (I) What was the value of total purchases for the month?

    (ii) What was the value of stock issue for the month?

    (iii) What was the value of closing stock at the end of August?


    (c) What information from the Stock Card should have appeared on the:

    (I) Trading Account?

    (ii) Balance Sheet?
    Clough's Avatar
    Clough Posts: 26,677, Reputation: 1649
    Uber Member
    		  
    #2

    Mar 1, 2009, 12:22 AM

    Hi, Confident One!

    Greetings and WELCOME to the site! I just moved your question that you had posted in Introductions to this forum topic area so that it will get the most exposure to those who are best able to answer it. Introductions is for people to introduce themselves and we try to not ask questions there.

    It can be a little confusing when first learning how to use this site! Your question will get noticed much more in this forum topic area.

    We would appreciate it if you would return to Introductions sometime to tell us a little about yourself though, if you would be willing to do that.

    Concerning your question - We do help people with homework on this site. But, the keyword here is "help". We don't directly answer homework questions for students here. If we did, how would that be helping them to learn how to come up with the answers themselves?

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    Thanks!
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